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Investment

Investment policy in Indonesia is very open to foreign investment access. This, among others, is indicated by only a small number of sectors are restricted, the availability of fiscal incentives to attract foreign investors, no limitation on the value of investment, the possibility for foreign investors to wholly own their investment in almost all sectors and simplified investment approval process. The Indonesian Government realizes that investment is one of the most important factors in driving economic growth and, thus, tries hard to improve investment procedures in the future in order to stimulate a more favorable investment climate. Hence, the new investment law, passed in March 2007, cuts down time and procedures to start a business in Indonesia, opens up sectors previously included in negative list for investment, converting ‘red tape’ into ‘red carpet’. With a market over 230 million people, rich in natural resource and labour force, situated strategically in Southeast Asia and linked to 500 million ASEAN market, Indonesia is a lucrative destination for investment.

Investment realization (Jan – Dec, in USD):

 

2006

2007

Net Growth

Domestic

2.31 billion

3.87 billion

67.80%

Foreign

5.97 billion

10.34 billion

73.19%

Total

8.28 billion

14.21 billion

72.00%

Foreign Investment realization by sector (Jan-Dec 2007)

No.

Sector

Investment

(in USD million)

Projects

1

Transportation, Warehouse & Communication

3,305.2

43

2

Chemical & Pharmaceutical Industry

1,611.7

32

3

Metal, Engineering & Electronics Ind.

714.1

99

4

Food Industry

704.1

53

5

Paper, Paper Good & Printing Industry

672.5

11

Source: Indonesian Investment Coordinating Board 

For further information:

The Indonesian Investment Coordinating Board (BKPM)

Jend. Gatot Subroto No. 44 Jakarta 12190 Indonesia
Phone
             : (62-21) 525-2008, 525-2649, 525-4981
Facsimile
        : (62-21) 525-4945
Email
              : sysad@bkpm.go.id 

 

Indonesian Chamber of Commerce and Industry (KADIN)

Menara Kadin Indonesia Lt 29 - Jalan HR Rasuna Said X-5 kav 2-3,
Jakarta 12950 - Indonesia
Telepon           :[62-21]-5274484 (hunting)
Fax                  :[62-21] 5274331 - 5274332
Email               : infokadin@kadin-indonesia.or.id (public relations), hln@kadin-indonesia.or.id  (international relations)